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How do we complete the TX lien waiver form when we hire a subcontractor to do the work for our client and the client wants us to send a lien waiver?

TexasLien Waivers

We are a tiny sign company that has a Property Manager that has asked us to change their pylon sign to LED. We use a larger sign company to do the work. Our client has requested a lien waiver. We are in TX. We have never done one of these. I am filling out questions on your website for the lien waiver. Who do I put as Making the payment and Waiving the lien rights? Basically we pay the vendor. We mark up the price and charge our client who pays us. what do I put for Who hired the claimant?

1 reply

May 24, 2018

That's a fair question. First, think of a lien waiver as a receipt - when a payment is made to a contractor, the paying party receives a lien waiver from the contractor as their "receipt" for having made payment. When submitting a lien waiver, only the lien rights of the party submitting the waiver may be waived. The party submitting the waiver is the party waiving lien rights - and only that party's rights may be waived. The customer is often the "paying party" if they're making payment in exchange for the receipt of the waiver. It's worth noting, though, that when a party who has a subcontractor submits a lien waiver for their role on the job, a submitting party may be required to collect a lien waiver from their subcontractor. Here's a guide zlien has published breaking down Texas' Conditional Lien Waiver - but keep in mind, Texas is also home to other lien waivers.

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